For the fiscal year ended June 30, 2020, calculate the following for Shamrock Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. $2.45.) Basic earnings per share. = ? Basic earnings per share. = ?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Amy Dyken, controller at Shamrock Pharmaceutical Industries, a public company, is currently preparing the calculation for basic and diluted earnings per share and the related disclosure for Shamrock’s financial statements. Below is selected financial information for the fiscal year ended June 30, 2020.

Long-term debt    
   Notes payable, 10%  
$990,000
   9% convertible bonds payable  
5,040,000
   10% bonds payable  
6,080,000
     Total long-term debt  
$12,110,000

Shareholders’ equity   Preferred stock, 5% cumulative, $50 par value, 104,000 shares authorized, 26,000 shares issued and outstanding

$1,300,000

   Common stock, $1 par, 10,000,000 shares authorized, 1,000,000 shares issued and outstanding

1,000,000

   Additional paid-in capital 3,990,000

   Retained earnings 6,090,000

     Total shareholders’ equity $12,380,000

The following transactions have also occurred at Shamrock.

1.   Options were granted on July 1, 2019, to purchase 180,000 shares at $15 per share. Although no options were exercised during fiscal year 2020, the average price per common share during fiscal year 2020 was $20 per share.
2.   Each bond was issued at face value. The 9% convertible bonds will convert into common stock at 50 shares per $1,000 bond. The bonds are exercisable after 5 years and were issued in fiscal year 2019.
3.   The preferred stock was issued in 2019.
4.   There are no preferred dividends in arrears; however, preferred dividends were not declared in fiscal year 2020.
5.   The 1,000,000 shares of common stock were outstanding for the entire 2020 fiscal year.
6.   Net income for fiscal year 2020 was $1,490,000, and the average income tax rate is 20%.


For the fiscal year ended June 30, 2020, calculate the following for Shamrock Pharmaceutical Industries. (Round answers to 2 decimal places, e.g. $2.45.)

Basic earnings per share. = ?

Basic earnings per share. = ?

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